When the Central Bank Undertakes a Monetary Tightening,the Resulting __________

question 121

Multiple Choice

When the central bank undertakes a monetary tightening,the resulting __________ leads to an eventual __________,represented by a __________ shift in the inflation adjustment line.

• A) expansionary gap;decline in inflation;downward
• B) expansionary gap;rise in inflation;downward
• C) recessionary gap;decline in inflation;upward
• D) recessionary gap;rise in inflation;upward
• E) recessionary gap;decline in inflation;downward

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